HUNDREDS of new jobs are set to be created in Coventry after an engineering firm unveiled a multi-million pound expansion plan.

Pailton Engineering is on the verge of almost tripling its workforce after winning a conditional offer of £4.8million from the Regional Growth Fund.

The government funding will boost the firm’s ambitious plans to invest £20million in its business and staff over the next five years.

A total of 235 jobs will be created at Pailton’s Holbrook Lane factory, as well as over 150 jobs in the supply chain.

The cash will also go towards a new £9million state-of-the-art facility being built in the city. The first round of recruitment could start next year.

Managing director John Nollett said the cash will boost both the company’s global reputation as well as the local economy.

“A new era is dawning for Pailton thanks to the grant from the Regional Growth Fund,” he added.

“The money will enable us to put our expansion plans on an even faster track than we were hoping, and it spells a welcome boost to the local jobs scene and the local economy.

“Pailton Engineering has always been full of pride at the engineering excellence on offer in Britain and the engineering heritage of our city.

"The expansion plans should see Pailton forging ahead to becoming a truly global manufacturing brand, exporting not only our products, but the great names of Coventry and Great Britain.”

Bosses are confident the company’s expansion plan will result in a turnover of £30million for the business by 2017. The money will not only create jobs, it will also help to continue and expand the company’s apprenticeship scheme and provide a company-wide training programme.

Building work on the new purpose-built manufacturing facility could start in 2014. Its location is being kept secret by the firm but it will eventually house state-of-the-art machinery for the company’s new specialised power steering, wiper systems and axles.

The news has been welcomed by local business leaders. Louise Bennett, chief executive of the Coventry & Warwickshire Chamber of Commerce, said: “This is excellent news.

“Pailton Engineering is a classic example of the type of company we need here in Coventry and Warwickshire – and across the UK – if we are to see sustained growth in the economy.

“It’s an engineering firm which wants to invest and grow. Not only that, but it is very much committed to international trade and is flying the flag for this region’s and this country’s engineering excellence.”